Ethereum price forms rare pattern ahead of Fusaka upgrade
Ethereum price has slipped in the past few months, coinciding with the ongoing crypto market crash. Ethereum (ETH) token was trading at an important support level at $3,000 on Sunday, down by nearly 40% from its highest level this year.…
Ethereum price has slipped in the past few months, coinciding with the ongoing crypto market crash.
- Ethereum price has formed the bullish falling wedge pattern.
- The network will launch the Fusaka upgrade on Wednesday.
- Tom Lee’s BitMine has continued buying ETH tokens this year.
Ethereum (ETH) token was trading at an important support level at $3,000 on Sunday, down by nearly 40% from its highest level this year.
Still, the token has numerous catalysts that may boost its price in the coming weeks. One of the main catalysts is the upcoming Fusaka upgrade, which will happen on December 3 this year.
Fusaka will be an important upgrade that will introduce some notable behind-the-scenes features as the network continues to improve. The most notable upgrade will be the Peer Data Availability Sampling, which will enable validators to verify rollup blob data without downloading everything.
By implementing this feature, the network will reduce the bandwidth and storage needs while enabling much higher throughput.
Fusaka will also introduce verkle trees, predictable blob fees, and history expiry tweaks. It will help the network continue to gain market share in key industries like DeFi and Real-World Asset tokenization industries.
This growth and continued innovation explains why some notable investors have continued to buy ETH. The most notable one is Tom Lee, who has spent billions of dollars through his BitMine Immersion company. BitMine, which top investors like Cathie Wood and Peter Thiel back, holds ETH tokens worth over $10 billion in the past few months.
Ethereum price technical analysis
The daily chart reveals that the ETH price has slumped in the past two months. This crash was mostly triggered by the large liquidation event that cost investors billions of dollars in a day.
The coin has some notable bearish technicals, including being below the 50-day and 100-day moving averages. That is a sign that bears remain in control, as evidenced by the Supertrend indicator.
On the positive side, Ethereum price has formed a giant falling wedge pattern. This is a common pattern made up of two descending and converging trendlines.
The two lines of the MACD indicator have formed a bullish crossover, which is a bullish sign. Also, the Relative Strength Index (RSI) has pointed upwards and is slowly nearing the neutral point at 50.
Therefore, there is a likelihood that the token will rebound in the coming days. If this happens, the token will likely rise to the key resistance at $3,500. A move below the support at $2,635 will invalidate the bullish outlook.